Which of the Following Statements About the Replacement Cost Provision

question 2

Multiple Choice

Which of the following statements about the replacement cost provision of the Homeowners 3 policy is true?

• A)It applies to personal property losses only.
• B)Except for small losses,the insured must repair or replace the damaged property in order to receive full replacement cost.
• C)The insured is required to carry an amount of insurance equal to 100 percent of the replacement value of the insured property.
• D)Loss settlements are equal to 50 percent of the value of the loss if the insured is carrying less than the required amount of insurance.

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